Sunday, September 27, 2009

To break in America you need to let America break you in

I remember when U2 released The Joshua Tree.  I had been a fan since very early - they were popular among the other boys in house at school.  The Unforgetable Fire was always blaring out of someone’s study or other, for ages following its release.

Anyway, I remember that in an interview or review or similar (it’s a long time ago I don’t recall exactly) talked a lot about how they recognized that to break into the American market in big way, and take that step up to another level with staying power (that, let’s face it, few if any of their post-punk contemporaries have succeeded), they had to live in America, embrace America.  To understand America well enough to serve the American audience they had to learn what it is, in some small but significant way, to be American.

It’s hard to argue that they weren’t right.  The Joshua Tree was indeed a very American sounding album, and it was just a monster hit.  It elevated them to a completely different plane of stardom.  In the US and worldwide.

I wonder if the same is true for start-up entrepreneurs.


I’ve read a lot of articles in the past few months, as I get back into ramp-up mode ready to launch a new start-up, that talk about how if you want to break out as a high-tech start-up (software/Internet play) you really have to focus on the US market.  It’s huge, relatively homogeneous and if you nail it gives you the critical mass to go out after the other global markets with deep pockets and robust infrastructure.  IIRC TechCrunch had a post about just that a week or so back.

Let’s take an alternative location:  just about any country in Europe.  If you start there and focus on the domestic market you have a lot more problems and challenges.  Language differences.  Broader cultural spread.  Cross-border regulatory issues.  The list goes on… it’s long.  Also none of the European markets in themselves is big enough to achieve the kind of critical mass that makes VCs moist at the lips.  Or so the argument goes.

Of course there’s some come back - with Spotify, Skype, Bebo?  Though the first is still unproven in the long run, the latter lost the fight to other social networks and will remain a niche player, and Skype’s founders are likely to get kicked in the knees if they turn up in Silicon Valley any time soon - they’re farting in everyone’s elevator right now.

If you don’t want to go for America first as a non-US entrepreneur, that’s fine.  Your decision.  Not going to second guess that.

However, if you are going to try to break in America, then you really need to follow the U2 model.  Live here.  Spend time here.  Embrace what makes America different from where you originate, while holding on to all that richness of experience you bring with you.

I have a good friend.  Has some challenges with a business.  Really the only place for someone like him with his skillset is the US market.  But everytime he leaves the comfort of Europe just cannot stand it in the US.  Something culturally just jars with him every time.  I don’t think it’s a coincidence that he just doesn’t ever seem to get traction in the US.

I don’t think that can be made to work.  Not if you’re serious about startups, serious about building a billion dollar company.

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